It’s never too early – or too late – to start saving for retirement.
Save for your retirement with a Retirement Savings Plan (RSP)
With an RSP from Oaken, you can put money aside for your retirement in a secure investment that guarantees your principal and your interest, while taking advantage of the tax benefits that come with contributing to an RSP.
Here’s how an Oaken RSP can help you reach your retirement goals:
Tax savings – now and later
- The contributions you make to your RSP reduce your overall taxable income. That means you’ll pay less income tax every year you contribute to your plan.
- The income you earn in your RSP is tax-sheltered until you withdraw it – so your money has the opportunity to grow.
- By the time you begin to withdraw your money at retirement, you’ll likely be in a lower tax bracket – so the money you withdraw at that time would be taxed at a lower rate.
- If you’re married or living common-law, the higher income earning spouse can contribute to the other’s RSP. This evens out your overall taxable income, which means you pay less tax as a couple.
Security of guaranteed income
- Because a GIC guarantees your principal and interest, you know your retirement savings are secure.
- All Oaken GICs are eligible for Canada Deposit Insurance Corporation (CDIC) coverage, up to applicable limits, so your savings are protected and your money will be there when you need it.
Did you know? You can use your RSP for more than just retirement!
|Maximum RSP contributions|
|Tax laws permit you to contribute up to 18% of your eligible income from the previous year, up to the following yearly maximums:
Learn more about this at the Canada Revenue Agency website.
|Buying your first home|
|First time homebuyers can withdraw up to $25,000 from their RSP for a purchase of a home. You get 15 years to pay back what you’ve borrowed, making it an affordable way to get your first home sooner. Learn more about this at the Canada Revenue Agency website.|
|Going back to school|
|You can also withdraw from your RSP to fund full-time training or education for you or your spouse. Learn more about this at the Canada Revenue Agency website.|
|Reducing your overall taxes|
|Contribute to a spousal RSP to reduce your overall family tax bill. If you earn a significantly higher income (or expect to in retirement), you can contribute to an RSP in your spouse’s name while claiming the contribution as a deduction on your own tax return. In the long run you’ll pay less tax and you can both withdraw income during your retirement. Learn more about this at the Canada Revenue Agency website.|